The AUDUSD pair came under some fresh selling pressure on Thursday and is currently placed at weekly lows, around the 0.7275 region. Should traders expect further weakness below that level? What does the 30 August AUDUSD Technical Forecast explain?
30 August, OctaFX – The pair struggled to build on overnight modest rebound and met with some fresh supply to resume with this week’s retracement slide from the 0.7350-60 supply zone.
AUDUSD Fundamental Highlights
Disappointing domestic data, released earlier during the Asian session on Thursday, was seen as one of the key factors weighing on the Australian Dollar and exerting fresh downward pressure for the third consecutive session.
Aussie private business CapEx surprised on the downside and fell by 2.5% in the June quarter, worse than an upwardly revised 1.2% growth recorded in the previous quarter and 0.6% anticipated. Adding to this, new building approvals also posted a sharper than expected decline, falling 5.2% m/m versus 2.5% drop expected.
Meanwhile, a modest US Dollar rebound, supported by an upward revision of the US Q2 GDP growth figures on Wednesday, added to the weakness, with sliding copper prices doing little to support the commodity-linked Australian Dollar.
Moving ahead, market participants now look forward to the US economic docket, featuring the release of core PCE price index, personal income/spending data and the usual weekly jobless claims, in order to grab some short-term trading opportunities.
30 August AUDUSD Technical Forecast
Weakness below 0.7275 level is likely to get extended towards the 0.7240-35 support area before the pair eventually drops to challenge the 0.7200 round figure mark.
On the flip side, momentum back above the 0.7300 handle might continue to confront fresh supply near the 0.7315-20 region, above which the pair is likely to aim back towards testing the 0.7350-60 supply zone.
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